Suppose That a Perfectly Competitive Firm and a Monopolist Are

question 204

Multiple Choice

Suppose that a perfectly competitive firm and a monopolist are both charging $5 per unit for their respective outputs.One can infer that

• A) marginal revenue is $5 for both firms.
• B) marginal revenue is $5 for the competitive firm and less than $5 for the monopolist.
• C) marginal revenue is less than $5 for both firms.
• D) the competitive firm is charging too much and the monopolist too little.
• E) both firms are earning a profit.

---

Definitions:

Attitude

A settled way of thinking or feeling about something, reflecting a person's beliefs, feelings, and predispositions towards objects, people, or events.

Jigsaw Classroom

An educational approach designed to minimize racial conflict among school children by promoting cooperation and understanding in ethnically diverse classrooms.

Prejudice

A preconceived opinion or judgment about someone or something that is not based on reason or actual experience, often stemming from stereotypes.

Ethnic Backgrounds

References to a person's ancestry or culture, often related to nationality, language, religion, and other social factors that demonstrate a shared communal identity.